Groups plea for Vic energy crisis fix

Victorian households desperately need the government to enact recommendations from an independent energy review that found the market is failing customers, consumer groups say.

The review of the state's gas and electricity markets says increased competition and deregulation has led to fundamental market failure and recommends an overhaul to make it fairer and easier for customers to navigate.

Victorians were, on average, paying 21 per cent - about $300 - more for electricity per year compared with the cheapest offer on the market, review co-author and former deputy premier John Thwaites said.

The panel recommended 11 changes to drive down prices and one of the key requirements is for retailers to introduce a "no frills" offer regulated by the Essential Services Commission.

Consumer and welfare groups say the recommendations provide a path for the state government to ease skyrocketing prices and provide greater transparency.

Victorian Council of Social Service chief executive Emma King said the current system was in "crisis" with people freezing at night or skipping meals to pay bills.

The report's call for the state government to force energy retailers to advertise their offers in dollar terms, not confusing discount percentages, was "a potential game changer", she said.

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The Consumer Action Law Centre says the proposal to re-regulate energy prices would bring an immediate benefit to customers.

But the Australian Energy Council, which represents major energy retailers, says re-regulation would not solve unaffordable pricing and blamed price increases on national energy policy uncertainty, government interference and the resulting closure of old, large power stations.

Energy Minister Lily D'Ambrosio says the review provides a "plan of action" for the government.